INTERNAL CONTROLS IN AN EDP ENVIRONMENT The second standard of field work requires that we obtain a sufficient understanding of the client’s internal controls (I/C) to plan the audit and assess control risk. We hope that our assessment of control risk shows it to be low so that we can reduce substantive testing‚ thereby reducing audit costs. When EDP is used in significant accounting applications‚ then you must consider the effects the computer has when evaluating the internal controls. The auditor’s
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Earnings Management can be for positive or for fraudulent purposes. This project explores the various methods in which firms engage in Earnings Management and different models which may explain the various factors effecting Earnings Management. | TABLE OF CONTENTS Introduction 3 Revenue Management 3 Earnings Management 3 Motives 5 Instruments 5 Project Methodology 8 Objective 8 Scope 8 Methodology 8 Analysis 9 Model 1 9 Model 2 14 Model 3 21 Satyam Case Analysis: 28
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which exceeds materiality of $50‚000. c. The auditor should either propose an audit adjustment so that the unadjusted statement amount is less than materiality‚ and/or perform more testing to obtain a better estimate of the population misstatements. The additional testing will likely focus on receivables and inventory because they have the largest estimated misstatements. 9-28 a. The following terms are audit planning decisions requiring professional judgment: Preliminary judgment about materiality
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THREATS TO AN AUDITOR BY UADIA CHRISTOPHER 14027674 Ethics Ethics can be defined broadly as a set of moral principles or values The word “Ethics” was derived from the Greek word ethos‚ meaning ‘character’. Ethics are standards of behaviour that describes how people react when they encounter different situations Ethics for Professionals The professional Ethics code is a part of Ethics which answers the question: how should the profession be practised? Professionals are expected
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Q1) Please summarise the professional standards of care for dental care for professionals. There are nine principles which every dental professional has to follow: 1 Put patients’ interest first 2 Communicate effectively with patients 3 Obtain valid consent 4 Maintain and protect patients’ information 5 Have a clear and effective complaints procedure 6 Work with colleagues in a way that is in patients’ best interests 7 Maintain‚ develop and work within your professional knowledge and skills 8
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SUMMARY OF THE INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF NIGERIAN ENAMELWARE PLC. NAME OF THE COMPANY: Nigerian Enamelware Plc. NAME OF THE AUDITORS: Akintola Williams Deloitte‚ Charted Accountant‚ Lagos Nigeria. SOURCE OF INFORMATION: Annual Report & Accounts 2012. SCOPE: The financial statement audited by the auditors include; the balance sheet‚ profit and loss account‚ statement of cash flow‚ value added statement‚ financial summary‚ significant accounting policies and other
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mandatory rotation of audit firms to ensure the appropriate level of independence ’ of auditors. Majority of studies conclude that the detrimental effects of firm rotation on the quality of the audit work by far outweigh its positive effects as a safeguard against various independence and quality threats. Frequent changes of audit firms‚ whether resulting from mandatory rotation or otherwise‚ introduce threats to independence and operational difficulties that make audit failure more likely. Many
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Professional and ethical issues c a S eS inc lu de d in t hiS Se ction 3 . . . . . . . . . . . . . . . . 3.1 A Day in the Life of Brent Dorsey Staff Auditor Professional Pressures 59 63 65 71 79 3.2 Nathan Johnson’s Rental Car Reimbursement Solving Ethical Dilemmas–Should He Pocket the Cash? Recognizing It’s a Fraud and Evaluating What to Do . . . . . . 3.3 The Anonymous Caller 3.4 WorldCom The Story of a Whistleblower . . . . . . . . . . . . . . . . . . . . . . . .
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ACCT 401-01 Chapter 2: Professional Standards Introduction Self-regulated: the standards governing audits were established by members of the profession themselves Sarbanes-Oxley Acct of 2002 Created: Public Company Accounting Oversight Board (PCAOB) to provide external and independent oversight over the audits of public entities Responsible for registering public accounting firms‚ establishing standards for audit engagements‚ and inspecting the quality of audits conducted by public accounting
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Audit Evidence This chapter deals with the types of evidence decisions auditors make‚ the evidence available to auditors‚ and the use of that evidence in performing audits. NATURE OF EVIDENCE • Evidence is any information used by the auditor to determine whether the information being audited is stated in accordance with the established criteria. • Evidence includes information that is highly persuasive‚ such as the auditor ’s count of marketable securities‚ and less persuasive information
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